Got D!cked by ING Direct

[Alkesh]

3 Months ago I lock up a small chunk of change in a CD at ING direct. I was collecting 3.6 percent. One month ago they raise it to like 3.9% I talk to their sales staff and I tell them I'm hesitant to open another CD because everyone is anticipating rate hikes from the Fed. He assures me that despite what the fed might do, ING has finished it's rate cycle and that there would be no other increases. So I open another CD at 3.9% apr. I log on this morning to find the 1 yr CD to be at 4.15%

Buttfuxed by ING

 

[JohnCU]

Their savings account went up to 3.3% today too.

 

[jdini76]

so you are complaing that you didn't wait until it rose again?

 

[Alkesh]

Originally posted by: JohnCU
Their savings account went up to 3.3% today too.

Yea, but that can be nothing but good because it's not locked in.

 

[DaWhim]

what know something called CD ladder? let say you have $300 for CD. $100 for first month, $100 for second month, and $100 for the third, so on. at least you get an average with this strategy.

 

[JohnCU]

Originally posted by: DaWhim
what know something called CD ladder? let say you have $300 for CD. $100 for first month, $100 for second month, and $100 for the third, so on. at least you get an average with this strategy.

I thought CD laddering was when you had 1,2,3,4,5 year CDs so that you had one coming in at the end of each year...

 

[tw1164]

how big was the CD?

 

[tw1164]

Originally posted by: JohnCU

Originally posted by: DaWhim
what know something called CD ladder? let say you have $300 for CD. $100 for first month, $100 for second month, and $100 for the third, so on. at least you get an average with this strategy.

I thought CD laddering was when you had 1,2,3,4,5 year CDs so that you had one coming in at the end of each year...

that's what I tought too

 

[Alkesh]

Laddering is CD term not rates, you can't really dictate rates for CDs of the same term.

 

[Alkesh]

The point is the sales rep told me taht this wouldn't happen and it did. I would have waited a little bit if he didn't assure me rates would not go up.

 

[AccruedExpenditure]

Originally posted by: DaWhim
what know something called CD ladder? let say you have $300 for CD. $100 for first month, $100 for second month, and $100 for the third, so on. at least you get an average with this strategy.

This is called dollar cost averaging, not a "CD Ladder"

oh yeah to the OP- Stop whining... oh noes, here comes the wahhhhmbulace...

 

[MrKneecap]

A sales rep isn't going to tell you to wait to open a CD. If they did that, everyone would just wait for rates to go up, but they might never open an account. It's still a business you know.

 

[Alkesh]

:roll:

Originally posted by: AccruedExpenditure

oh yeah to the OP- Stop whining... oh noes, here comes the wahhhhmbulace...

 

[CRXican]

Originally posted by: MrKneecap
A sales rep isn't going to tell you to wait to open a CD. If they did that, everyone would just wait for rates to go up, but they might never open an account. It's still a business you know.

exactly, do your own research

 

[FrustratedUser]

That's why I don't do CD.

 

[CRXican]

Originally posted by: FrustratedUser
That's why I don't do CD.

also a good choice, just keep some liquid in the Orange Savings account at a decent 3.3%

then put the rest in something with higher yields, CDs don't do much for you

 

[JohnCU]

Originally posted by: CRXican

Originally posted by: FrustratedUser
That's why I don't do CD.

also a good choice, just keep some liquid in the Orange Savings account at a decent 3.3%

then put the rest in something with higher yields, CDs don't do much for you

QFT.

 

[Toasthead]

Originally posted by: JohnCU

Originally posted by: DaWhim
what know something called CD ladder? let say you have $300 for CD. $100 for first month, $100 for second month, and $100 for the third, so on. at least you get an average with this strategy.

I thought CD laddering was when you had 1,2,3,4,5 year CDs so that you had one coming in at the end of each year...

yeah that how I understand it too.

 

[zebano]

Originally posted by: AccruedExpenditure

Originally posted by: DaWhim
what know something called CD ladder? let say you have $300 for CD. $100 for first month, $100 for second month, and $100 for the third, so on. at least you get an average with this strategy.

This is called dollar cost averaging, not a "CD Ladder"

oh yeah to the OP- Stop whining... oh noes, here comes the wahhhhmbulace...

That is dollar cost averaging, but the term is usually applied to mutual funds or stocks. DaWhim is also correct that that is the definition for a cd ladder. A ladder can have any term you desire, so that you have cd's maturing every day/month/year, it's all up to you. Personally (If I bought cd's), I would prefer to buy smaller cd's more often (monthly) so that if need be I would have a steady flow of money.

 

[Quasmo]

I get my CD's from iTunes.

 

[Ranger X]

People at ING will tell you what you want to hear. Obviously they're not going to say the rates are going to rise and that you should wait.

 

[Phoenix86]

Originally posted by: Alkesh
The point is the sales rep told me taht this wouldn't happen and it did. I would have waited a little bit if he didn't assure me rates would not go up.

Ever ask a barber if you need a haircut?

 

[paulney]

Never understood the need to lock in your money in a CD. You are parting with them for several years, and get a slightly-better-than-savings return. Want better return - try bonds, stocks. And no locking needed.

 

[rudder]

Originally posted by: Alkesh
I talk to their sales staff

There's your malfunction. You talked to the sales staff. Their job is to make suckers like you earn less on your money.

 

[HardcoreRobot]

you dicked yourself by taking a risk with a fixed rate